President of the Ghana Institute of Freight Forwarders (GIFF), Kwabena Ofosu-Appiah, has lauded the establishment of the Railway Development Ministry, as it will save cost to shippers, improve transit trade and position the critical sea trade sector for good times ahead.
“For us as freight forwarders, we have been starved of this mode of transport for a very long time, looking at the current state of the railway system.
Also, the industry has increasingly entered into the multi-modal era, where you do not need only one mode of transport handling the carriage of goods,” he told the B&FT.
The GIFF boss was optimistic that an efficient rail transport system holds huge prospects for the maritime business, as trade keeps expanding and consumers’ preference for “foreign goods” keep changing.
According to him, the railway sector is an area worthy of focus and one that the new government is right to give the much-needed attention.
Mr. Ofosu-Appiah said rail is the next cheaper means of transport after water and that with the former, shippers can haul a lot of volumes at a go.
“If there is any conscious effort to focus on the sector, then we have to pray that objective is realised,” he emphasised.
Touching on operational implications, the GIFF boss argued that an efficient rail network will reduce cost for businesses in the landlocked countries of Niger, Burkina Faso and Mali.
This, he said, will in turn redirect traffic through the country’s ports to reverse the declining transit trade figures.
He said: “For instance, if we can have a railway line to Boankra Inland Port, then we can hope for busy times ahead given that the chunk of cargo throughput to the Tema and Takoradi ports are moved to the Ashanti Region for onward carting to the hinterlands and transit destinations.
The concern of the GIFF boss has been supported by two sister associations in the maritime industry namely: the Greater Accra Shipper Committee (GARSC) and the Importers and Exporters Association of Ghana.
Chairperson of the GARSC, Adobea Asiama-Aboagye, told the B&FT that revamping the country’s rail network will facilitate cheaper exports, especially for businesses in the hinterlands.
“An efficient rail transport system will ensure smoother and faster movement of cargo at the ports. When you come to the port area, several terminals have been given for trucks to be parked, and this seems to be a nuisance but that is what is at stake; an efficient rail system will handle the situation,” she said.
Executive Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit, emphasised same when he disclosed to the B&FT that the Ministry of Railway Development is a prudent and important decision from government as it will give due attention to the development an efficient rail transport system.
“Ultimately, this will reduce the cost of doing business at the port, specifically when it comes to movement of cargo from the port to inland destinations,” he said.
Meanwhile, Railway Development Minister Joe Ghartey, has indicated that investors are already trooping in to partner government in the expansion of the country’s rail network from the south to Paga in the Upper East.
The project is estimated to cost about US$5 billion and according to him, government will consider a cocktail of Build Operate and Transfer (BOT) and other several examples.
He told the Appointments Committee of Parliament: “Due to the government’s pro-business policies, investors have shown interest to partner government.
It is estimated that the cost of road haulage is 50 percent more than the alternative of using railway lines. This affects the bottom line businesses that rely solely on road transport to cart their goods.
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